Math & Calculator
Income Tax Calculator
Compare old vs new tax regime and see which one saves you more
Financial year 2026-27 · Assessment year 2027-28
Only changes the old regime exemption limit.
Standard deduction applies to salary and pension only.
Deductions (old regime only)
Leave blank if you do not claim them. The new regime ignores these.
PF, ELSS, LIC — max ₹1.5L
extra NPS — max ₹50k
health insurance
if you pay rent
24(b) — max ₹2L
80G, 80E, etc.
An estimate for salaried income under FY 2026-27 rules. It does not cover capital gains, business income or foreign income, and it is not tax advice. Confirm with a chartered accountant before filing.
How to Use
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Seeing Both Regimes Side by Side Before You Declare
Enter your annual gross salary, pick your age band, and add any deductions you actually claim. The tool computes both regimes at once and marks the one that costs you less, along with the exact rupee difference. Each card breaks the figure down into taxable income, slab tax, Section 87A rebate, surcharge where it applies, and the four percent cess, so you can see where the money goes rather than trusting a single total. Nothing is hidden behind a sign-up and no advisor calls you afterwards.
New Regime Slabs for FY 2026-27 and Why Twelve Lakh Matters
The new regime charges nothing up to four lakh, five percent to eight lakh, ten percent to twelve lakh, fifteen percent to sixteen lakh, twenty percent to twenty lakh, twenty five percent to twenty four lakh, and thirty percent above that. The number everyone quotes is twelve lakh, and it comes from the Section 87A rebate of sixty thousand rather than from the slabs themselves. Add the seventy five thousand standard deduction and a salaried person earning up to twelve lakh seventy five thousand owes nothing at all.
The Cliff Just Above the Rebate Limit
The rebate is all or nothing, so crossing the limit costs more than the extra rupee you earned. Taxable income of twelve lakh attracts no tax, while twelve lakh and one rupee would attract the full slab amount if nothing softened the edge. Marginal relief exists to blunt exactly this, but the practical lesson stands: if your taxable income lands slightly above twelve lakh, an extra contribution that pulls you back under the line is worth far more than its face value. Run both numbers here before deciding.
What the Old Regime Still Has Going for It
The old regime keeps its lower exemption of two and a half lakh, rising to three lakh at sixty and five lakh at eighty, but it allows the deductions the new regime removed. Section 80C covers provident fund, ELSS, life insurance and tuition up to one and a half lakh. Section 80CCD(1B) adds fifty thousand for NPS. Section 80D covers health premiums, Section 24(b) allows up to two lakh of home loan interest, and HRA exemption can be substantial in a metro. Stacked together on a big home loan and a high rent, these can still beat the new regime.
Roughly Where the Two Regimes Cross Over
For a salary around fifteen lakh the new regime stays ahead until deductions reach roughly six lakh, which in practice means a full 80C, the extra NPS, health cover, and a large home loan interest claim together. Below that the new regime wins comfortably. At twenty lakh the crossover sits higher again. This is why a general rule does not help: the answer turns on your own rent and loan, not on your salary alone, which is the whole reason this page shows both figures instead of recommending one.
Surcharge, Cess and the High Income Brackets
Above fifty lakh a surcharge applies on top of the tax: ten percent past fifty lakh, fifteen percent past one crore, and twenty five percent past two crore, with the old regime going to thirty seven percent past five crore while the new regime caps at twenty five. Marginal relief prevents the tax from rising by more than the extra income at each threshold, and this calculator applies it. A four percent health and education cess is then charged on tax plus surcharge, which is why the final figure is always a little above the slab arithmetic.
Treat This as an Estimate, Not a Filing
The calculation models salaried income under FY 2026-27 rules. It does not handle capital gains, which are taxed at their own rates, nor business or professional income, foreign income, or clubbed income. It also assumes you are resident in India for tax purposes. Use it to decide which regime to declare to your employer and to sanity check the TDS on your payslip, then confirm the final position with a chartered accountant before you file.
Frequently Asked Questions
It depends entirely on how much you can deduct. Under FY 2026-27 slabs the new regime wins for most salaried people, because income up to twelve lakh is effectively tax free. The old regime only pulls ahead once your deductions are very large, typically around six lakh or more. Enter your real numbers and the tool shows both.
Yes, for taxable income up to twelve lakh, because the Section 87A rebate of sixty thousand cancels the tax due. With the seventy five thousand standard deduction, a salaried person earning up to twelve lakh seventy five thousand pays nothing. Cross that line and the rebate disappears, so tax applies on the whole slab amount.
The new regime is the default, so you are placed in it unless you opt out. Salaried people without business income can switch between the two each year when filing. Anyone with business or professional income can move back to the old regime only once, so that choice needs more thought.
Your employer deducts TDS across twelve months using the regime and declarations you gave at the start of the year. If you did not submit investment proofs, or you changed jobs, or you have income from another source, the total will not match. Any difference settles as a refund or extra payment when you file.
No. Every calculation runs in your browser and nothing is uploaded, logged or stored on a server. Your deduction amounts are optionally saved in your own browser so you do not retype them next year, and the clear button removes them. There is no sign-up and no follow-up call from an advisor.